Overview
- On December 18, Morgan Stanley urged clients to increase positions in TSMC, raised its price target to NT$1,888, and maintained an Overweight rating.
- The bank expects TSMC to guide to mid‑20% revenue growth for 2026 but to deliver closer to 30%, outpacing a roughly 22% Street consensus.
- Analysts tied the higher growth outlook to a forecast 2026 capital expenditure of $49 billion and continued expansion of 3‑nanometer capacity.
- TSMC trades around a 33 P/E in recent coverage, while Morgan Stanley argues the shares look attractive at about 16x and 13x its 2026 and 2027 average EPS estimates.
- As the world’s largest contract chipmaker with roughly 72% foundry share, TSMC makes advanced AI semiconductors for customers including Nvidia and Microsoft and remains diversified across markets like smartphones and autos.